The Internal Revenue Service (IRS) has temporarily eased a tax accounting rule that could have resulted in higher tax bills for centralized exchange (CeFi) crypto holders in 2023. Previously, the IRS had said that crypto assets sold through a Cefi broker would be automatically accounted for on a first-in, first-out (FIFO) basis if the broker did not specify a cost basis method, like highest-in, first-out (HIFO) or specific identification (Spec ID). However, the IRS has recognized that most Cefi brokers are not yet ready to support HIFO or Spec ID accounting, leading to a reprieve for affected holders. Under FIFO accounting, the cost basis of assets sold is assumed to be the cost basis of the oldest assets purchased. If FIFO were implemented without the option for alternative methods, it could have resulted in higher capital gains and tax liability for some crypto holders who intended to sell assets with a higher cost basis first. This prompted the IRS to create a temporary fix that allows taxpayers to specify the lot of assets they sold. However, starting in 2026, crypto holders will have to choose a method of accounting to use with Cefi brokers, and FIFO will be the default method.